Colorado voters approved lodging tax increases on short-term rentals in November 2025

Updated 15 October 2026. After a source check by the standards desk, 7 sentences were removed because no source confirmed their specifics. Corrections log.

On November 18, 2025, Avalara MyLodgeTax reported that Colorado voters approved multiple local ballot measures to raise lodging taxes up to a maximum of 6% on short-term rentals. The decisions were made during the general election held on November 4, 2025, which marked the first major voting day since the Colorado state legislature passed a law allowing county governments to increase lodging taxes up to a maximum rate of 6% with voter approval.

Previously, Colorado state law capped county lodging tax increases at 2%, meaning the legislative change opened the door for counties to triple their maximum rates. Municipalities, which have no state-mandated maximum allowable rate, also placed various lodging tax measures on the ballot. These taxes apply directly to short-term rental bookings of less than 30 days, impacting hosts, property managers, and online marketplaces operating across the state.

What the data shows

The election results compiled across Colorado showed a mixed outcome for lodging tax increases, with several counties and municipalities successfully passing hikes while others rejected them. According to Avalara MyLodgeTax and Complete Colorado, nearly a dozen lodging tax measures were decided at the municipal and county levels on November 4, 2025.

In Basalt, voters approved Issue 3A, which increased the local lodging tax from 2% to 4%. Complete Colorado reported that the measure passed with over 65% of the vote.

In Eagle County, voters approved Issue 1A, raising the lodging tax from 2% to 4% in unincorporated areas of the county and within the town of Gypsum. Complete Colorado reported that this measure passed with a 50.34% yes vote. Avalara MyLodgeTax reported that of the revenues generated, 10% will be allocated to tourism promotion, while 90% will go toward lowering child care costs for local families and enhancing local services, including law enforcement, emergency medical, and fire protection. The narrow margin of victory highlights how divided local communities can be over tax increases, even when the funds are earmarked for popular services like child care and emergency medical response.

In Gilpin County, voters approved Issue 1A, which increased the lodging tax from 2% to 6%, excluding the cities of Central and Black Hawk. Complete Colorado reported that the measure passed with just under 55% of voters saying yes. Under this measure, at least 10% of the collected funds will be spent on marketing promotion, while the remaining portion will be used to support local roads and child care programs.

In Kiowa, voters approved Issue 2A, establishing a new 1% lodging tax to fund town infrastructure. Complete Colorado reported that this measure passed with just under 53% voter approval.

In Mountain View, voters approved Issue 2A, creating a new 8% lodging excise tax. Complete Colorado reported that this tax passed with over 56% voter approval and was projected to raise $87,600 in revenue.

In Ouray County, voters approved Issue 1A, establishing a new 6% lodging tax. The city of Ouray and the town of Ridgeway, which already maintain their own lodging taxes, are exempt from this new county tax. Complete Colorado reported that the measure passed with 57% voter approval.

In Routt County, voters approved Issue 1B, raising lodging taxes to 6%. The tax does not apply in Steamboat Springs and Hayden. Complete Colorado reported that the measure passed with over 55% voter approval. Avalara MyLodgeTax reported that 90% of the funds will be allocated to infrastructure projects and 10% to tourism promotion. This allocation represents a significant departure from historical lodging tax usage, which was heavily weighted toward tourism marketing.

In Park County, voters approved Issue 1A, which increased the lodging tax to 6% to fund roads and tourism. Complete Colorado reported that the measure passed with just over 63% voter approval.

In Summit County, voters approved Referred Measure 1A, which allows the county to use funds from its existing 2% lodging tax to cover expenses related to road reconstruction and repair.

Conversely, several lodging tax measures failed to win voter approval. In Severance, voters rejected Issue 2I, a proposed 3% lodging tax intended for infrastructure, public safety, and parks. Complete Colorado reported that the measure failed by more than 54%.

In Rifle, voters rejected Issue 2B, which proposed a 3% hike to the existing lodging tax, raising it from 2.2% to 5.5%. Complete Colorado reported that the measure failed by slightly more than 51%.

In Chaffee County, voters rejected Issue 1A, which sought to triple the lodging tax from 2% to 6% and expand it to include Buena Vista, Pancha Springs, and Salida. Complete Colorado reported that the measure failed by over 58%.

In Custer County, voters rejected Issue 1A, which proposed a 6% lodging tax for housing and child care. Complete Colorado reported that the measure failed by over 66%.

In Vail, voters rejected Issue 2A, which proposed a 6% excise tax on short-term rental income. Town staff estimated that the tax would have generated approximately $7.2 million a year to fund workforce housing. Complete Colorado reported that Airbnb donated $30,000 to oppose the Vail measure.

How it was measured

These figures were recorded through local and county election results compiled on and after the November 4, 2025, general election in Colorado. The primary source, Avalara MyLodgeTax, compiled these results and published its analysis on November 18, 2025. Complete Colorado published initial municipal and county election results on November 6, 2025. The Colorado Sun reported the final certified results for the town of Vail on November 17, 2025, after Eagle County completed its ballot counting and curing process.

The tax rates and structures are administered by the Colorado Department of Revenue, which oversees state sales tax and local lodging taxes in unincorporated counties. Short-term rental marketplaces and individual operators report transaction and booking data to local authorities and the state department to comply with these tax requirements.

What moved these tax measures

The primary driver behind the wave of lodging tax measures was a shift in Colorado state law. The state legislature passed a law that increased the maximum county lodging tax rate from 2% to 6% with voter approval. In addition to raising the tax cap, the state legislature expanded the legally allowed uses of lodging tax revenue. Previously, counties were restricted to spending accommodations tax revenues on affordable housing, child care for local workers, enhancing visitor experiences, and tourism marketing and promotion. The new law expanded these categories to include infrastructure and public safety.

This legislative change prompted counties and municipalities across Colorado to place measures on the ballot to capture revenue from the growing short-term rental sector to fund local public services. For example, Eagle County earmarked 90% of its new revenue for child care and local emergency services, while Routt County allocated 90% of its revenue to infrastructure projects.

In Vail, the proposed tax faced significant opposition from managers of condotels, which are condominium complexes with privately owned short-term rentals operating like traditional hotels. These managers7 argued that the 6% excise tax unfairly targeted short-term rentals while exempting traditional hotels.

Who the tax changes affected

The approved tax measures directly affect short-term rental operators, hosts, property managers, and booking platforms. In Colorado, short-term rental operators in unincorporated counties are legally required to register with the Colorado Department of Revenue for tax purposes and collect local lodging taxes and state sales tax. This means that individual hosts must stay informed about the specific boundaries of their properties, as county-level taxes often exclude certain incorporated cities or towns that maintain their own tax structures.

While some short-term rental marketplaces collect Colorado lodging taxes on behalf of operators when a listing is booked, these platforms do not collect all lodging taxes in all jurisdictions. Consequently, individual operators remain responsible for ensuring full compliance with local lodging tax requirements. If a marketplace fails to collect the correct tax rate or misses a specific local jurisdiction, the legal liability for unpaid taxes falls entirely on the property owner.

Even in jurisdictions where a marketplace automatically collects and remits lodging taxes, Colorado hosts are still legally required to register for a state tax license and file regular lodging tax returns. The introduction of new and higher tax rates across multiple counties increases the administrative burden on hosts and property managers, who must update their pricing structures and ensure accurate tax reporting across different jurisdictions.

What the data did not tell you

Furthermore, the data does not show how these tax increases will affect consumer demand or booking volumes. A higher tax rate increases the total cost of a stay for guests, but the sources do not provide analysis on whether these increases will lead to a reduction in bookings or if hosts will be forced to lower their base rates to remain competitive. Finally, the sources do not outline the specific administrative costs that individual hosts and property managers will incur to comply with the new tax registration and filing requirements.

What to take from it

The passage of these lodging tax measures across Colorado highlights a growing trend of local governments using short-term rentals to fund essential public services. Hosts and property managers operating in these regions should adapt their business practices to account for these regulatory shifts.

• Monitor state-level legislative changes closely, as shifts in state-mandated tax caps often lead to a wave of local ballot measures and tax increases.
• Verify tax collection policies for each specific jurisdiction, as online marketplaces do not automatically collect and remit all lodging taxes in every area.
• Incorporate potential tax rate increases into financial projections and pricing strategies, as higher lodging taxes can affect overall booking competitiveness.
• Ensure proper licensing and filing compliance, as state laws often require hosts to file returns even if platforms handle the collection of taxes.